Boeing Terminates Agreement To Establish Joint Venture With Embraer

“Boeing has worked hard for more than two years to complete its transaction with Embraer. In recent months, we have had productive but ultimately unsuccessful negotiations on unsatisfied MTA conditions. We wanted to resolve them all before the initial termination date, but that wasn`t done,” said Marc Allen, president of Embraer Partnership-Group Operations. It`s deeply disappointing. But we have reached a point where the continuation of the MTA negotiations will not resolve the outstanding issues. Embraer believes that it fully complies with its obligations under the MTA. “It will bring all action against Boeing regarding damages to Embraer as a result of Boeing`s illegitimate termination and violation of the MTA,” an Embraer statement said. CHICAGO, April 25, 2020 /PRNewswire/ — Boeing (NYSE: BA) announced today that it has terminated its Master Transaction Agreement (MTA) with Embraer, under which the two companies are attempting to establish a new level of strategic partnership. The parties had planned to create a joint venture comprising Embraer`s civil aviation activities and a second joint venture to open new markets for C-390 Millennium central air and air mobility aircraft. The volatility of the current aviation market is not to be overlooked. Both manufacturers understand that it may take some time for orders to be placed. This could have been part of the reasons for the termination of this agreement. Boeing could have worked with Embraer to extend the deadline.

However, the American producer decided not to do so. Ahead of the agreement, Boeing and Embraer had already signed an agreement to support C-390 Millennium military aircraft. This agreement was last extended in 2016. Boeing has hinted that this link will continue despite the expiry of this agreement. Boeing and Embraer are embedding a dispute over Boeing`s denunciation of its Master Transaction Agreement (MTA), in which the two companies attempted to build a new level of strategic partnership. Pictured, the E-190 E2 aircraft to ignite. Photo: Embraer A beautiful series of Embraer planes that, like Bombardier SO SUPERIOR`s CS series on 50-year-old design, was that Boeing, the “cheapskates” STILL was trying to flood the market! Allen added that Embraer was intended to resolve these conditions until the original termination date, but this was not done.